Global issues such as avian flu and trade restrictions will continue to affect global trade in 2015, according to the latest Rabobank report on the sector.

The Rabobank Poultry Quarterly Q4 for 2014 reports that regions affected by avian flu outbreaks, like the EU and Canada, will suffer from lost export markets, affecting local prices. However the outlook for non-affected regions such as Brazil and US remains strong.

Rabobank's Nan-Dirk Mulder said: "A key concern for the coming months is the spread of avian flu, which has become a global issue in recent months. Several avian flu strains are already endemic in several parts of Asia and Mexico, and the disease is increasingly spreading globally via wild birds."

Rabobank report that in the long-term, higher levels of biosecurity and reconsidering existing business models will be needed to prepare for disease pressure, especially during bird migration periods.

Russian ban

Russia's import ban on US and EU poultry meat will lead to record high prices and margins in Russia. The outbreaks of avian flu have been a wake-up call for the Russian industry, Rabobank reports, as markets have been highly affected by import restrictions on day old-chicks and hatching eggs. A future supply risk for Russia will remain and any outbreak in Northwest Europe can affect future market conditions significantly.

Global trade streams will shift significantly, with Brazil strengthening its export position in Russia and capturing the US and EU export market shares.

However, global industry margins are still bullish on strong markets and low feed prices and global poultry trade prices are expected to remain stable after declines in recent quarters.